Most car buyers are drawn to the glitz and glamor of a brand new car, and are more than willing to shell out a considerable amount just to drive the latest car models. If you really want to make the most out of your money, used cars can actually be the better choice due to their inherent qualities.
Recent expert analyses found that used cars of today present little to no trouble among car buyers. Unlike those in 2007, used cars of today aren’t at risk of developing major engine and transmission problems early on. Furthermore, many used cars can easily reach 200,000 miles with proper maintenance.
Brand new cars tend to lose as much as 47 percent of their value within three years, and would continue depreciating by 24 percent in the next three. Used cars, on the other hand, don’t depreciate its value as fast as its brand new counterpart.
Certain used car models are equipped with commonplace safety features, such as antilock brakes, traction control, and side air bags. While these might seem like a far cry from today’s hi-tech features, these would certainly help in protecting you and your passengers in the event of an accident.
Used doesn’t necessarily mean substandard, and used cars are testament to that fact. Visit nearby used cars dealerships to learn more about the benefits of used cars.
Financing is one of man’s greatest inventions. Despite all the criticisms, it’s undeniable how much help lending extends to millions of Americans who lack the resources. Auto financing, for instance, has helped countless families purchase their much needed transport. Before taking out an auto loan, however, it pays to know how the financing process works.
Financing means lending money to support someone’s purchase. Financial institutions, banks, and private lenders are the ones that provide this service. Anyone who considers borrowing to support their financing can apply for a financing program from them. There are two available options for anyone considering financing—direct lending and dealership lending.
Direct lending involves taking out a loan directly from a bank or a credit union. While this may sound like a great idea, it can completely be troublesome, especially if you are applying for an auto loan for the first time. You might find the process too complex that you might end up accepting anything they put on your plate. Also, most creditors have limited time when entertaining clients.
Dealership financing, on the other hand, means you will get financing through the auto dealership where you are buying the vehicle from. You with enter a financing contract with the dealership and the dealership will sell that contract to a financial institution. It’s a good riddance of the complicated application process. Some dealerships even allow financing for buyers with bad credit. If you are planning to take out an auto loan soon but you have a really messed up credit history, don’t hesitate to go to car dealers for bad credit consumers.
A car is a major purchase, and many people simply don’t have the cash on hand to buy one outright. If you’ve had some credit issues, finding a car can be even more difficult. Taking extra steps on your part can help you get a loan without an exorbitant interest rate.
Check Your Credit Reports
Before you seek financing, check all three of your credit reports so that you can dispute incorrect information. Also, refrain from applying for new credit accounts in the weeks and months before you begin your car search. Applications for credit can affect your credit score negatively.
Allow Yourself Some Time
Depending on your situation, it may take longer to get financing on the type of vehicle that you want and need. Don’t wait until you’re in a desperate situation to start hunting for a new automobile. When it becomes obvious that your current car will soon need to be traded in, begin your search for a new car and a financing agreement that you can afford.
Ask About Dealer Financing
Many dealers specialize in arranging auto loans for bad credit customers. The dealership owner and management understand that even good people can fall on rough times and suffer a financial setback. Talk to your salesperson about your concerns and ask about financing options.
Review Your Agreement
Before you sign a contract or a promissory note, review all the terms of the agreement. Make sure that you understand your interest rate, the cost of any fees, and the consequences of late or missed payments.
Purchasing a car, whether new or used, shouldn’t be done on a whim. Since vehicles are an investment, one must take the time to make sure that the money that will be spent on it will be worth it. Otherwise, you risk making a purchase that you wouldn’t benefit from in the long run. To prevent such a mistake, there are steps you need to take.
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